GBP/USD (LONG)
After last weeks General Election news, we saw the pound fall hard. However all today we have seen the pounds slow attempt at recovery and its struggle at the very crucial 1.28460 level where it has been consolidating for a while. As you can see I have highlighted areas in the past where this level has proved a very strong monthly support, and now resistance level.
The idea of price breaking through this level to the next level of resistance as the first target, has started from the fundamental analysis of the 'Core Personal Consumption Expenditure - Price Index (YoY)' report to be released tomorrow at around 12:30 as you can see tagged in the chart. Looking into this I was able to find the estimated reading to be announced is a 6 month low which should result in continuation of a bearish dollar trend in this pair. This alongside the existing bullish trend that already exists should consequently aid the pounds recovery.
This is all purely my speculation and any comments will be very much appreciated!
The idea of price breaking through this level to the next level of resistance as the first target, has started from the fundamental analysis of the 'Core Personal Consumption Expenditure - Price Index (YoY)' report to be released tomorrow at around 12:30 as you can see tagged in the chart. Looking into this I was able to find the estimated reading to be announced is a 6 month low which should result in continuation of a bearish dollar trend in this pair. This alongside the existing bullish trend that already exists should consequently aid the pounds recovery.
This is all purely my speculation and any comments will be very much appreciated!
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